News Release

CONTACTS:

Company:	Investor Relations:
Karen T. Boyd	Deborah K. Pawlowski
Senior Vice President and Treasurer	Kei Advisors LLC
Phone: (229) 873-3837	Phone:  (716) 843-3908
investorinfo@sgfc.com	dpawlowski@keiadvisors.com

For Immediate Release

Southwest Georgia Financial Corporation Reports 2017 Third Quarter Results

MOULTRIE, GEORGIA, October 24, 2017 -- Southwest Georgia Financial Corporation (the “Company”) (NYSE American: SGB), a full-service community bank holding company, today reported results of operations for the third quarter and nine months ended September 30, 2017. Comparisons are to prior-year periods unless otherwise noted.

“On a year-to-date basis we continue to trend higher than last year’s record earnings per share pace, despite the significant expenses incurred to migrate to our new core processing provider and our continued expansion into the Tifton market,” commented DeWitt Drew, President and CEO. “We will continue to invest in technology and systems to better serve our customer base and are looking forward to completing construction on our Tifton branch in early 2018. While overall credit quality is still solid, that is an area we will continue to focus on as we grow in both our legacy and new markets.”

Income Highlights

· For the nine months ended September 30, 2017, net income was up 2% to $3.1 million, or $1.21 per diluted share. Average loans grew $35.8 million, driving strong growth in net interest income of $1.0 million, or 9%. However, increased overhead expenses mostly offset this growth due in large part to higher professional fees, migration to a new core processing provider, and personnel costs related to staffing the Company’s Tifton expansion and greater incentive based income.

·For the quarter, net income decreased slightly to $952 thousand, or $0.37 per diluted share. Strong net interest income growth of $391 thousand, or 10%, was more than offset by a $329 thousand increase in noninterest expense and a decrease in noninterest income of $91 thousand, primarily within mortgage banking services income. Higher overhead expenses for the quarter were related to a mass reissue of debit cards, other system migration costs and increased salaries and employee benefits.

Balance Sheet Trends

· Total assets grew 8% to $477.2 million, reflecting exceptional loan growth of $42.6 million, or 15%, to $329.8 million at period end.

·Total deposits at September 30, 2017, were $384.8 million, up 6%, mostly due to an increase in money market and noninterest-bearing deposit accounts. Federal Home Loan Bank Advances were up $11.5 million at quarter-end as further funding for loan growth.

Capital Management

· Book value per share grew 5% to $16.10.

· The Company has a Total Risk-Based Capital Ratio of 13.87%, a Common Equity Tier 1 Capital Ratio of 12.90%, and a Leverage Capital Ratio of 9.00%, all measurably above the federal “well capitalized” standard.

· In September 2017, the Company paid a quarterly cash dividend of $0.11 per common share. Southwest Georgia Financial Corporation or its predecessor, Southwest Georgia Bank, has paid cash dividends for
89 consecutive years.

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Webcast and Conference Call

The Company will host a conference call and webcast on Tuesday, October 24, 2017 at 1:00 p.m. ET. Management will review the financial and operating results for the third quarter of 2017, as well as the Company’s strategy and outlook. A question and answer session will follow the formal discussion.

The conference call can be accessed by calling (201) 689-8263. Alternatively, the webcast can be monitored at www.sgfc.com.

A telephonic replay will be available from 4:00 p.m. ET on the day of the teleconference until Tuesday, October 31, 2017. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13671694, or access the webcast replay at www.sgfc.com/investorrelations.cfm, where a transcript will be posted once available.

About Southwest Georgia Financial Corporation

Southwest Georgia Financial Corporation is a state-chartered bank holding company with approximately $477 million in assets headquartered in Moultrie, Georgia. Its primary subsidiary, Southwest Georgia Bank, offers comprehensive financial services to consumer, business, and government customers. The current banking facilities include the main office located in Colquitt County, branch offices located in Baker County, Worth County and Lowndes County, and a loan production office located in Tift County. In addition to conventional banking services, the Company provides investment planning and management, trust management, and commercial and individual insurance products. Insurance products and advice are provided by Southwest Georgia Insurance Services, which is located in Colquitt County. The Company routinely posts news and other important information on its website.

More information on Southwest Georgia Financial Corporation and Southwest Georgia Bank can be found at: www.sgfc.com.

SAFE HARBOR STATEMENT
This news release contains forward-looking statements, as defined by federal securities laws, including statements about the Company’s financial outlook. These statements are based on current expectations and are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. Important factors that could cause actual results to differ materially from those contemplated today include a change in the Company’s capital structure, new or expanded regulatory requirements, the success of the Company’s growth strategy, customer preferences, the interest rate environment and other factors described in the Company’s filings with the Securities and Exchange Commission, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q under the sections entitled “Forward-Looking Statements” and “Risk Factors”. The Company undertakes no obligation to update any forward-looking statements as a result of new information, future events or otherwise, except as otherwise required by law.

Financial tables follow.

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SOUTHWEST GEORGIA FINANCIAL CORPORATION

CONSOLIDATED STATEMENT OF CONDITION

(Dollars in thousands except per share data)

	(Unaudited)			(Audited)			(Unaudited)
	September 30,			December 31,			September 30,
	2017			2016			2016
ASSETS
Cash and due from banks	$	8,670		$	7,700		$	6,515
Interest-bearing deposits in banks		11,618			18,819			26,503
Certificates of deposit in other banks		1,985			0			0
Investment securities available for sale		54,947			53,566			45,338
Investment securities held to maturity		46,955			54,603			56,389
Federal Home Loan Bank stock, at cost		2,464			1,874			1,874
Loans, less unearned income and discount		329,820			292,524			287,226
Allowance for loan losses		(3,208	)		(3,124	)		(3,093	)
Net loans		326,612			289,400			284,133
Premises and equipment		11,891			11,209			11,772
Bank properties held for sale		212			212			0
Foreclosed assets, net		904			127			127
Intangible assets		23			35			39
Bank owned life insurance		5,457			5,357			5,325
Other assets		5,481			5,599			5,015
Total assets	$	477,219		$	448,501		$	443,030
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
NOW accounts	$	29,078		$	47,420		$	32,983
Money market		116,769			95,659			97,975
Savings		30,982			29,007			30,834
Certificates of deposit $100,000 and over		41,207			43,235			35,393
Other time accounts		38,243			39,524			48,029
Total interest-bearing deposits		256,279			254,845			245,214
Noninterest-bearing deposits		128,477			116,648			119,042
Total deposits		384,756			371,493			364,256
Other borrowings		22,114			8,448			8,448
Long-term debt		24,771			26,029			26,886
Accounts payable and accrued liabilities		4,561			4,109			4,349
Total liabilities		436,202			410,079			403,939
Shareholders' equity:
Common stock - par value $1;  5,000,000 shares
authorized; 4,293,835 shares issued (*)		4,294			4,294			4,294
Additional paid-in capital		31,701			31,701			31,701
Retained earnings		32,583			30,333			29,612
Accumulated other comprehensive income		(1,441	)		(1,786	)		(402	)
Total		67,137			64,542			65,205
Treasury stock - at cost (**)		(26,120	)		(26,120	)		(26,114	)
Total shareholders' equity		41,017			38,422			39,091
Total liabilities and shareholders' equity	$	477,219		$	448,501		$	443,030
*    Common stock - shares outstanding		2,547,437			2,547,437			2,547,837
** Treasury stock - shares		1,746,398			1,746,398			1,745,998

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SOUTHWEST GEORGIA FINANCIAL CORPORATION

CONSOLIDATED INCOME STATEMENT (unaudited*)

(Dollars in thousands except per share data)

	For the Three Months				For the Nine Months
	Ended September 30,				Ended September 30,
	2017*		2016*		2017*			2016*
Interest income:
Interest and fees on loans	$	4,170	$	3,785	$	11,996		$	11,017
Interest and dividend on securities available for sale		326		243		996			793
Interest on securities held to maturity		290		332		916			1,022
Dividends on Federal Home Loan Bank stock		26		22		73			68
Interest on deposits in banks		35		26		125			65
Interest on certificates of deposit in other banks		12		0		23			0
Total interest income		4,859		4,408		14,129			12,965
Interest expense:
Interest on deposits		280		243		821			676
Interest on federal funds purchased		0		0		1			0
Interest on other borrowings		62		28		114			76
Interest on long-term debt		130		141		408			430
Total interest expense		472		412		1,344			1,182
Net interest income		4,387		3,996		12,785			11,783
Provision for loan losses		75		45		225			115
Net interest income after provision for losses on loans		4,312		3,951		12,560			11,668
Noninterest income:
Service charges on deposit accounts		260		277		787			808
Income from trust services		54		54		164			157
Income from retail brokerage services		84		90		281			258
Income from insurance services		347		310		1,158			1,124
Income from mortgage banking services		16		89		154			272
Net gain (loss) on the sale or disposition of assets		0		0		(9	)		0
Net gain on the sale of securities		20		57		187			169
Other income		188		183		630			596
Total noninterest income		969		1,060		3,352			3,384
Noninterest expense:
Salary and employee benefits		2,335		2,222		6,953			6,575
Occupancy expense		290		297		845			864
Equipment expense		215		182		633			633
Data processing expense		375		350		1,146			1,004
Amortization of intangible assets		4		4		12			12
Other operating expense		849		684		2,348			2,059
Total noninterest expense		4,068		3,739		11,937			11,147
Income before income tax expense		1,213		1,272		3,975			3,905
Provision for income taxes		261		299		885			873
Net income	$	952	$	973	$	3,090		$	3,032
Net income per share, basic	$	0.37	$	0.38	$	1.21		$	1.19
Net income per share, diluted	$	0.37	$	0.38	$	1.21		$	1.19
Dividends paid per share	$	0.11	$	0.11	$	0.33		$	0.31
Basic weighted average shares outstanding		2,547,437		2,547,837		2,547,437			2,547,837
Diluted weighted average shares outstanding		2,547,437		2,547,837		2,547,437			2,547,837

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SOUTHWEST GEORGIA FINANCIAL CORPORATION

Financial Highlights

(Dollars in thousands except per share data)

At September 30	2017		2016
Assets	$	477,219	$	443,030
Loans, less unearned income & discount	$	329,820	$	287,226
Deposits	$	384,756	$	364,256
Shareholders' equity	$	41,017	$	39,091

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Performance Data & Ratios
Net income	$	952		$	973		$	3,090		$	3,032
Earnings per share, basic	$	0.37		$	0.38		$	1.21		$	1.19
Earnings per share, diluted	$	0.37		$	0.38		$	1.21		$	1.19
Dividends paid per share	$	0.11		$	0.11		$	0.33		$	0.31
Return on assets		0.81	%		0.89	%		0.88	%		0.95	%
Return on equity		9.26	%		9.95	%		10.27	%		10.61	%
Net interest margin (tax equivalent)		4.14	%		4.12	%		4.09	%		4.20	%
Dividend payout ratio		29.45	%		28.81	%		27.20	%		26.05	%
Efficiency ratio		73.21	%		70.96	%		71.23	%		70.50	%
Asset Quality Data & Ratios
Total nonperforming loans	$	1,549		$	352		$	1,549		$	352
Total nonperforming assets	$	2,453		$	479		$	2,453		$	479
Net loan charge offs	$	(37	)	$	64		$	142		$	54
Reserve for loan losses to total loans		0.97	%		1.08	%		0.97	%		1.08	%
Nonperforming loans/total loans		0.47	%		0.12	%		0.47	%		0.12	%
Nonperforming assets/total assets		0.51	%		0.11	%		0.51	%		0.11	%
Net charge offs / average loans		(0.04	)%		0.09	%		0.06	%		0.03	%
Capital Ratios
Average common equity to average total assets		8.71	%		8.97	%		8.55	%		8.99	%
Common equity Tier 1 capital ratio		12.90	%		13.18	%		12.90	%		13.18	%
Tier 1 capital ratio		12.90	%		13.18	%		12.90	%		13.18	%
Tier 1 leverage ratio		9.00	%		9.06	%		9.00	%		9.06	%
Total risk based capital ratio		13.87	%		14.21	%		13.87	%		14.21	%
Book value per share	$	16.10		$	15.34		$	16.10		$	15.34
Tangible book value per share	$	16.09		$	15.33		$	16.09		$	15.33

Quarterly	3rd Qtr			2nd Qtr			1st Qtr			4th Qtr			3rd Qtr
Averages	2017			2017			2017			2016			2016
Assets	$	471,643		$	469,201		$	466,019		$	452,865		$	435,880
Loans, less unearned income & discount	$	324,206		$	312,848		$	302,620		$	291,573		$	289,978
Deposits	$	385,989		$	390,268		$	388,761		$	374,346		$	357,421
Equity	$	41,089		$	40,169		$	39,054		$	39,178		$	39,110
Return on assets		0.81	%		0.92	%		0.91	%		0.89	%		0.89	%
Return on equity		9.26	%		10.69	%		10.91	%		10.23	%		9.95	%
Net income	$	952		$	1,074		$	1,065		$	1,002		$	973
Net income per share, basic	$	0.37		$	0.42		$	0.42		$	0.39		$	0.38
Net income per share, diluted	$	0.37		$	0.42		$	0.42		$	0.39		$	0.38
Dividends paid per share	$	0.11		$	0.11		$	0.11		$	0.11		$	0.11

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